PBOC sets USD/ CNY mid-point today at 7.1765 (vs. estimate was 7.1788 – 7.1954)

<p>The reference rate for the USD/CNY today was estimated at 7.1788 with the People's Bank of China's counter-cyclical factor" (CCF) included and 7.1954 without.</p><p>People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.</p><ul><li>USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.</li><li>CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.</li><li>A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.</li></ul><p>The previous close was 7.2095</p><p>Once again the PBOC set the onshore yuan much stronger than was expected.</p><p>PBOC injects 2bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%</p><ul><li>2bn yuan of RRs mature today</li><li>thus a net neutral on the day in OMOs</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.